Small Business Finance News

Business Group Says SBA And Commerce Dept. Merger Would Spell Disaster For Small Businesses

Written by Ken GaeblerPublished: 11/16/2010

American Small Business League warns against combining agencies

The American Small Business League made news for entrepreneurs after it came out against a plan by the Obama Administration to make the U.S. Small Business Administration part of the U.S. Department of Commerce.

The recommendation, which came from the president's National Commission on Fiscal Responsibility and Reform, came as a surprise to many in the small business community. The group's plan also seeks to cut the federal budget by $200 billion through 2015, a move which the ASBL said could have a disastrous effect on the job market.

"[TheSBA] is the only federal agency to assist America's chief job creators, its 27 million small businesses," said ASBL president Lloyd Chapman. "According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product and 90 percent of exports and innovations."

The ASBL has been in the headlines recently after taking a federal agency to court for not providing necessary information. The group has sued the Department of Homeland Security for not releasing reports on a contract it gave to Boeing.

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